The euro fell the most in almost four weeks against the dollar after European Central Bank President Jean-Claude Trichet said the region is undergoing an ``episode of weak activity,'' signaling policy makers aren't inclined to lift interest rates soon.
The European single currency dropped for a sixth day as Trichet said downside risks to growth prevail. The ECB kept its main rate at a seven-year high of 4.25%.
The Bank of England kept its target rate at 5%.
The euro has dropped 6.4% versus the dollar since Aug. 7, when Trichet said growth in the countries using the euro will be ``particularly weak'' through the third quarter.
The ECB today lowered its 2008 economic growth forecast to about 1.4% from 1.8%, and its 2009 prediction to 1.2% from 1.5%.
EUR/USD printed high at $1.4540 before falling down to $1.4211, triggering stops and bids.
GBP/USD fell from $1.7860 to $1.7530.
USD/JPY declined from Y108.50/60 to Y105.60 before rebounded to Y107.30.
Gains in the dollar may be limited by speculation a deteriorating labor market will restrain consumer spending.
Companies in the U.S. cut an estimated 33,000 jobs in August, a private report based on payroll data showed today. The decrease followed a revised gain of 1,000 for the prior month that was lower than previously estimated, ADP Employer Services said.
U.S. nonfarm payrolls fell by 75,000 jobs in August, more than the previous month's decline of 51,000, according to a survey before the Labor Department report due tomorrow.